Key Takeaways
- • Bruce Flatt, CEO of Brookfield Asset Management, predicted that the secondary market for private equity, real estate and infrastructure was ready to take off and could become a $50 billion business for the firm.
- • Five years on, the secondaries boom has arrived, and Brookfield has largely missed out, according to Bloomberg.
- • Rival managers are raising funds to buy stakes in portfolio companies from other buyout firms or to give their investors a route to liquidity.
Summary
Brookfield Asset Management chief executive Bruce Flatt forecast that the secondary market for private equity, real estate and infrastructure would take off and could grow into a $50 billion business for the Toronto-based asset manager. Bloomberg reports that five years after that forecast, the boom has materialized, but Brookfield has been largely absent from it.
Rivals have been raising dedicated funds to acquire chunks of portfolio companies from other buyout shops. Other managers are using secondaries to offer existing investors a way out of their commitments. Brookfield has been on the sidelines of this activity while competitors have moved to capture it. The report does not quantify the scale of the rivals' secondaries fundraising or detail Brookfield's current plans in the segment.
Rivals have been raising dedicated funds to acquire chunks of portfolio companies from other buyout shops. Other managers are using secondaries to offer existing investors a way out of their commitments. Brookfield has been on the sidelines of this activity while competitors have moved to capture it. The report does not quantify the scale of the rivals' secondaries fundraising or detail Brookfield's current plans in the segment.
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